EURJPY has been experiencing a downtrend since mid-October when the price peaked at the eight-year high of 148.39. In the short-term, the pair has been moving without a clear direction, currently trading sideways between the 50- and 200-day simple moving averages (SMAs).
The momentum indicators currently suggest that bearish forces are intensifying. Specifically, the stochastic oscillator is descending after posting a bearish cross within the 80-overbought zone, while the RSI crossed below its 50-neutral mark.
If sellers manage to push the price below the 200-day SMA, initial support could be met at the recent low of 140.54. Diving beneath that region, the price could descend towards 137.91 before the 2023 low of 137.38 comes under examination. Violating that zone, the price may then test the 135.50 hurdle.
On the flipside, should the pair break above its sideways pattern, the recent resistance of 142.29 may curb any upside moves. Conquering this barricade, the bulls could aim for 142.93 before the June resistance of 144.30 comes under examination. Even higher, the December high of 146.73 could prove to be a tough obstacle for the price to overcome.
In brief, EURJPY appears unable to escape its tight range, but near-term risks remain tilted to the downside. Hence, a close below the 200-day SMA could spark a significant decline.